Markets on edge fearing Donald Trump speech to Congress could spark mass sell offs

Tuesday, February 28, 2017
By Paul Martin

FINANCIAL markets are nervously awaiting Donald Trump’s speech to US Congress this evening, amid fears the President could trigger mass stock sell-offs.

Tue, Feb 28, 2017

The US leader has the potential to trigger huge stock, currency and investment movements when he speaks to lawmakers.

Markets are hoping for details on spending, as well as tax cuts, when he speaks to lawmakers at around 2am British time on March 1.

Mr Trump has promised a big statement on infrastructure in the speech to Congress.

The President has already revealed on Monday that he wants to increase defence spending by about £43billion ($54bn) in 2018.

It comes after the Dow Jones and US stocks have continued to hit record highs, amid the prospects of higher spending and tax cuts.

Investors will now closely watch Tuesday’s speech for further information and economy plans.

Kathleen Brooks, research director at City Index Direct, said: “Although this isn’t a formal State of the Union speech, it is very similar to one and it has the same function.

“Essentially it is the President’s laundry list of wants from Congress.

“However, it is crucial to remember that President Trump cannot pass tax and spend laws unilaterally, he needs Congress to do this for him.”

She added: “We expect the markets to hang on Trump’s every word, at least initially.

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